Car production higher for first time in a year

Car production has risen for the first time in more than a year, confirming the car industry's strong recovery from the recession.

Back on track: Demand for new cars has returned.

A total of 112,948 cars were manufactured in the UK in November - a 15.7% rise on the same month last year, the Society of Motor Manufacturers and Traders (SMMT) said.

This was the first monthly rise since September 2008 and shows the positive impact the Government's 'cash for bangers' car scrappage scheme has had on the motor industry. However, commercial vehicle (CV) production remains in negative territory, falling 16.2% last month compared with November 2008.

And despite the good figures this month, year-to-date car production is 34.4% down on the January-November 2008 total. CV production for the first 11 months of this year is down even further - by 57.6%.

SMMT chief executive Paul Everitt said the car production rise last month reflected 'the positive impact of scrappage schemes and economic stability in a number of major European markets'.

He went on: 'Total vehicle production is still well below previous levels and 2010 is set to be another tough year with considerable uncertainty at home and abroad. It is essential that governments continue to sustain and strengthen economic recovery, improving access to credit and encouraging investment in new technologies and products.'

On CV production, Mr Everitt said: 'Weak demand in key sectors of the economy and fragile business confidence continues to stall recovery in CV output. Production volumes have fallen in every month since September 2008.

'While the November (CV) figures represent the smallest recorded fall in the past 14 months, the sector is still down almost 60% on the year to date.'